.... StockPotentials September 17, 2010. MILLROCK RESOURCES INC. Price (September 17, 2010) $0.60 52-Week High-Low $0.64 - $0.17 Shares O/S 61.2 million Market Cap $36.7 million 50-day Average Volume 116,300 200-day Average Volume 126,500 Year-End December 31 Symbol TSX-V: MRO Website www.millrockresources.com Financial Data Source: www.bigcharts.com COMPANY PROFILE Millrock Resources Inc. ( Millrock or the Company ) is a junior mining company focused on the acquisition, exploration, and development of mineral properties prospective for gold, copper, and other valuable metals. Headquartered in Vancouver, British Columbia, the Company s properties lie in two distinct areas of the United States: Alaska and Arizona. STRATEGY eresearch Analysts: Shash Patel, B.Sc., MBA Bob Weir, B.Sc., B.Comm., CFA eresearch Corporation 56 Temperance Street, Suite 501 Toronto, ON M5H 3V5 Telephone: 416-643-7650 Toll Free: 877-856-0765 Note: This report was prepared with public information only. Millrock follows a project generator model. Under this model the Company finds and secures a property, and then does some preliminary exploration and maybe a small amount of drilling. Upon finding something of interest, the Company turns over the project to a joint venture partner which puts up the money to explore the property. Because the partner pays most of the exploration costs, shareholders benefit as there is little share dilution to Millrock. The Company s joint venture partners include Kinross, Teck, Vale, Inmet, and Altius (some hold an equity interest in Millrock, see page 2), and which, collectively, have underwritten US$5.5 million in exploration costs in 2010. CATALYST Millrock is conducting extensive exploration programs on many of its properties, with senior producers providing a majority of the capital. The Company would be a major beneficiary if any one of the projects shows promise of becoming a potential producing mine. eresearch Corporation www.eresearch.ca
INVESTMENT CONSIDERATIONS Strengths Millrock has a number of gold and copper projects that have mineral-producing potential (see Properties and Partnerships, next page); The Company follows a project generator model and has joint ventured many of its projects with major mining companies. These companies have committed to extensive exploration programs in which they will provide high risk exploration capital; Millrock s Board of Directors was strengthened with its addition of Roland Butler, a co-founder of Altius Minerals Corporation, a successful company that follows the project generator model; The financial position of the Company strengthened considerably over the last quarter through a private placement financing, exercise of warrants, and income from option payments and exploration management fees. The Company s cash position as at June 30, 2010 was $1.9 million; The Company is currently drilling four projects, which have total exploration expenditures exceeding US$5 million, of which only US$800,000 is to be funded by Millrock; and A significant portion of the Company s shares are held by management and senior mining companies, which is a positive endorsement for the Company (Management 10%, Altius 19%, Kinross 8%, and Teck 6%). Challenges After completing further exploration drilling, Millrock s joint venture partner(s) may decide it is prudent to abandon its agreement(s) with Millrock; Although currently adequately financed, Millrock is still a junior exploration company with no revenues from operations and is ultimately dependent upon its ability to raise capital; While Millrock s properties are located in reputable mining regions, success is never guaranteed, regardless of potential, since less than 1% of exploration properties make it to production; and The price of gold and/or copper can exhibit considerable volatility. eresearch Corporation www.eresearch.ca Page 2
PROPERTIES AND PARTNERSHIPS Millrock currently owns and operates seven exploration projects in Alaska and three in Arizona. I. ALASKA PROPERTIES The Company s Alaskan properties are located in three distinct regions: (1) the Bluff and Council projects lie in Seward Peninsula of western Alaska; (2) the Estelle, Revelation, Saint Eugene and Monte Cristo projects lie in the Kahiltna Terrane of south-central Alaska; and (3) the Uncle Sam and the Fortymile projects lie in the Tintina Gold Belt of eastern Alaska. (See Map 1 below) Map 1 The map below highlights the Company s properties in Alaska and respective joint venture partners. Source: Company 1. Bluff Project The Bluff property covers 142 sq km and is located 80 km east of Nome. BHP Billiton previously explored the property and, in 1991, reported a 500,000 ounce non NI 43-101 compliant gold resource on the property. The Company s 2010 exploration program includes 10,000 feet of drilling, with the objective of confirming and expanding the historical estimate. Valdez Gold Inc. has the right to earn up to a 75% interest in the mineral rights by spending US$6 million in exploration, making cash payments totaling US$900,000 and the issuance of two million Valdez shares to Millrock. Valdez has approved an exploration budget of US$1.2 million. eresearch Corporation www.eresearch.ca Page 3
2. Council Project The Council property covers 900 sq km and is located 100 km northeast of Nome. It is estimated that 500,000 ounces of gold have been produced from the Council area. Millrock s 2010 exploration program includes: reverse circulation drilling, geochemical surveys, geological work and prospecting. Kinross Gold Corporation has the right to earn up to a 75% interest in the mineral rights by spending US$6 million and making cash payments totaling US$260,000. A US$920,000 exploration budget, entirely funded by Kinross, has been approved. 3. Estelle Project The Estelle property is located 140 km northwest of Anchorage. The property contains a very large mineralized system. Millrock is targeting a potential gold deposit in the tens of millions of ounces at the project. A 2,000 meter drilling program is planned in collaboration with Teck American Inc. to test the Shoeshine and Oxide Ridge prospects with the objective of discovering a large, bulk-minable gold deposit. Teck earned the exclusive right to acquire a 65% interest in the project by investing $600,000 in Millrock. To complete the acquisition, Teck must spend US$8.6 million and make cash payments totaling US$400,000 on the project over the next four years. 4. Cristo Project The Cristo property is located 130 km northwest of Anchorage. Millrock is targeting a large-tonnage gold deposit at this project. The Company s planned exploration program consists of mapping and sampling to determine the extent of the mineralization. A letter of intent has been signed with Brixton Metals Corporation giving Brixton the right to earn a 100% interest in the Cristo claim group. To earn this interest, Brixton must spend US$5 million in exploration, make cash payments totaling US$350,000, and issue 1.5 million Brixton shares and 1.5 million purchase warrants to Millrock over a fouryear term. 5. Other Projects The Fortymile, Revelation and Uncle Sam are Millrock s other Alaskan projects. Limited exploration has been completed to date on these properties. The Company is currently searching for joint venture partners before a more extensive exploration program is initiated. II. ARIZONA PROPERTIES The Company s Arizona properties are all located in south-eastern Arizona: (1) the Galiuro project lies in the San Manuel-Copper Creek copper trend; and (2) the San Jose and (3) Dry Mountain projects lie in the Safford and Morenci copper trends. (See Map 2, next page) 1. Galiuro Project The 2,553 hectare Galiuro claim block is situated on the San Manuel-Copper Creek porphyry copper trend. The property is situated in a geological setting similar to one that hosts Rio Tinto s Resolution deposit that is located 80 km to the northwest and reported to contain one to two billion tons of ore grading 1% to 2% copper. Millrock is targeting a large, high-grade porphyry copper-gold-molybdenum deposit that can be mined by open pit. Vale can earn a 60% interest in the property by spending US$3.5 million and making cash payments totaling US$850,000 prior to December 31, 2012. Vale can earn an additional 10% interest in the property if it completes a positive feasibility study. Millrock is the operator of the project and carried out a field work program in 2009, funded by Vale, to determine favorable drill locations. The Company recently completed a drill program based on the field work and results are expected to be released later this year. eresearch Corporation www.eresearch.ca Page 4
Map 2 The map below highlights the Company s properties in Arizona and respective joint venture partners. Source: Company 2. Dry Mountain and San Jose Projects The 4,172 hectare Dry Mountain and San Jose properties cover the prolific Safford and Morenci porphyry copper trends in southeastern Arizona. The property is situated near Freeport-McMoRan s Morenci mine and Safford deposit, the company s flagship North American operations. Millrock is targeting a similar high-grade porphyry copper-gold-molybdenum deposit and recently conducted a ZTEM geophysical survey. Inmet Mining Corporation has the right to earn up to a 70% interest in the two properties by spending US$4 million in exploration and making option payments totaling US$300,000. Inmet committed to a 2010 exploration budget of US$500,000 million. Millrock and Inmet will develop a drilling program based on the results of the ZTEM survey. eresearch Corporation www.eresearch.ca Page 5
MANAGEMENT AND DIRECTORS The Company has assembled an experienced, geologically-oriented management team. Gregory Beischer, B.Sc., CPG, President & CEO, Director Philip St. George, B.S (Geol.), Vice President of Exploration Sarah Whicker, B.S., M.Sc., Vice President, Sustainable Development Kulwant Sandher, B.Sc., CA, CFO Janice Davies, Corporate Secretary Roland Butler, B.Sc., Geology, Director Darryl Cardey, CA, Director Charles C. Hawley, B.A., Ph.D., Director CORPORATE INFORMATION Millrock Resources Inc. Vancouver: 750 World Trade Center 999 Canada Place Vancouver, BC V6C 3E1 Office: (604) 638-3164 Toll Free: (877) 217-8978 Fax: (604) 688-9620 Anchorage: P.O. Box 200867 719 E 11th Street, Suite C Anchorage, AK 99520 Office: (907) 677-7479 Fax: (907) 677-3599 info@millrockresources.com www.millrockresources.com Source: Company eresearch Corporation is a primary source for professional investment research, focused primarily on small- and mid-cap companies. Our research and analysis is of institutional quality, and has the potential to reach millions of global investors through our extensive electronic distribution network. StockPotentials Reports The reports are written on companies that eresearch believes have interesting prospects, are smaller in size and, therefore, have little or no following on the Street, and which would benefit from the exposure that eresearch can provide through the dissemination of the reports via our extensive electronic distribution network. eresearch writes these reports solely from publicly-available information, and has not contacted or spoken with company management. Consequently, no Target Price or Recommendation is provided. eresearch does not receive a fee for the preparation and publication of StockPotentials reports. eresearch Corporation www.eresearch.ca Page 6